Company X is going to retire equipment that is fully depreciated with no residual value. The equipment will simply be disposed of, not sold. Which of the following statements is true?
1 – Total assets will not change as a result of this transaction.
2 – Net income will not be impacted as a result of this transaction.
3 – This transaction will not impact cash flow.
a. Only statement 2 is true.
b. Only statements 1 and 2 are true.
c. Only statement 3 is true.
d. All of the statements are true.